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EU suspends funds for Latvia due to poor controls

EU suspends funds for Latvia due to poor controls

January 29th, 2012 in News

RIGA, Latvia (AP) - The European Commission has said it will temporarily stop paying development funds to Latvia due to fears that the Baltic state lacks proper controls over how money is spent.

Latvia's Finance Ministry says the commission has given it three months to work out an action plan that will remove the shortcomings in how the ministry controls the use of EU funds.

The ministry said Saturday that current EU-funded projects would continue despite the suspension and expressed confidence that it would create "a more complete" system for managing EU funds.

Latvia has just emerged from one of the world's worst recessions and is keen to use the maximum possible amount of EU funds to help spur growth.